Pricol posted a strong Q2 FY27 performance with revenue reaching Rs 1,356 crore, a 35% jump YoY. Driven by robust two-wheeler demand and new OEM wins, the company is now expanding its plastics capacity by Rs 350 crore. While margins faced minor inflationary headwinds, the firm remains on track for a strategic demerger by April 2027.
Pricol Q2 Revenue Hits Rs 1,356 Crore Amid Strong Growth
Net Sales rise 34.7% YoY while EBITDA grows 29.3% to Rs 153 crore.
Reader Takeaway: Strong OEM demand drives top-line growth, though input cost inflation remains a key margin pressure point.
What just happened
Pricol delivered a robust financial performance for the quarter ending September 2026. The company reported net sales of Rs 1,356 crore, reflecting a 34.7% increase compared to the previous year. EBITDA stood at Rs 153 crore, up 29.3% YoY, while adjusted net profit climbed 33.2% to Rs 85 crore, translating to an EPS of Rs 7.0.
Why this matters
The company’s performance significantly outperformed the broader automotive industry's production growth of approximately 20%. This success was fueled by a 35% surge in domestic two-wheeler demand and high-value wins, including new business with Honda Motorcycles alongside existing relationships with TVS, Ather Energy, and Royal Enfield.
The backstory
Pricol is currently undertaking a strategic corporate restructuring. The business is being split into two distinct divisions: Driver Information & Connected Vehicle Solutions and Asset Management & Control Fuel Management Systems. The internal separation process commenced in October 2026, with the full demerger expected to be operational by April 1, 2027.
What changes now
To sustain long-term growth, the company is initiating a Rs 350 crore capital expenditure program for its plastics division over the next six quarters. Currently operating at nearly full capacity, these investments are designed to remove production bottlenecks. Commercialization is set to begin in the second half of FY27, with revenue benefits expected to materialize in FY28.
Risks to watch
Investors should monitor the impact of input cost inflation. Costs related to PCB prices, memory chips, and forex have compressed margins by 1-2%. While management is actively negotiating price pass-throughs with OEMs, there is a risk that full recovery may not be achievable. Additionally, execution risks regarding capacity expansion and supply chain stability remain.
What to track next
Watch for the outcome of OEM price negotiations in Q3 FY27 and further updates regarding the April 1, 2027, demerger completion date.